Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Equity Bottom-Up

CK Infrastructure Holdings / Equity Bottom-Up

Cheung Kong Infrastructure Holdings, or CKI, has seen its share price decline over the past few months following disappointment over the blocked Ausgrid bid in Australia and the drop in the British pound to below the USD 1.30 level.We think both events are short-term momentum speedbumps and have limited impact on our fair value estimate, which is retained at HKD 70 per share, and our narrow moat rating. We continue to expect CKI to be able to afford to grow its DPS at around the 4%-5% pace annually over the next 10 years. While this may be slower than the 11% average growth pace seen in 2010-2014, we think it remains a decent rate of growth.Analyst: Jennifer Song

Cheung Kong Infrastructure Holdings, or CKI, has seen its share price decline over the past few months following disappointment over the blocked Ausgrid bid in Australia and the drop in the British pound to below the USD 1.30 level.We think both events are short-term momentum speedbumps and have limited impact on our fair value estimate, which is retained at HKD 70 per share, and our narrow moat rating. We continue to expect CKI to be able to afford to grow its DPS at around the 4%-5% pace annually over the next 10 years. While this may be slower than the 11% average growth pace seen in 2010-2014, we think it remains a decent rate of growth.Analyst: Jennifer Song

CKI Holdings: Much Ado About Sterling, No Change in Our View

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

The first 10 months of 2016 brought its fair share of macroeconomic challenges to the region. During the 10 months, the Straits Times Index (STI) generated a 1% total return, which was not far behind that of the MSCI AC Asia Pacific Index. However, the 1% gain is hardly the full story for the 30 STI stocks in the year thus far.  All five Global Industry Classification Standards (GICS®) Sectors without STI representation also generated gains over the first 10 months. These Sectors are also at junctures of opportunity and challenge, with Sector-wide themes such as technology disruptors, population longevity &amp; growth and asymmetric trends in commodity prices. The five Sectors have also become increasingly important for investors who seek portfolio diversification in times of increased economic uncertainty.

The first 10 months of 2016 brought its fair share of macroeconomic challenges to the region. During the 10 months, the Straits Times Index (STI) generated a 1% total return, which was not far behind that of the MSCI AC Asia Pacific Index. However, the 1% gain is hardly the full story for the 30 STI stocks in the year thus far.  All five Global Industry Classification Standards (GICS®) Sectors without STI representation also generated gains over the first 10 months. These Sectors are also at junctures of opportunity and challenge, with Sector-wide themes such as technology disruptors, population longevity &amp; growth and asymmetric trends in commodity prices. The five Sectors have also become increasingly important for investors who seek portfolio diversification in times of increased economic uncertainty. 

Buoyant Returns Beyond the Benchmark in 2016 YTD

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

In November 2015, Power Asset Holdings ("PAH") shareholders voted against Cheung Kong Infrastructure's ("CKI") offer which killed the transaction. According to SFC's Rule No. 31.1, CKI has to wait 12 months from the lapse of the offer before they can relaunch another bid. The first offer tabled on 8 September 2015 was at an exchange ratio of 1.04 with HKD 5.00 in special dividends. CKI subsequently bumped the offer ratio to 1.066 and increased special dividend component to HKD 7.50. That was not enough. Most people wanted at least 1.10-1.20. The results of the vote showed... 49.29% of votes were against the scheme. Has CKI learnt its lesson, or more importantly, will they come back for PAH?

In November 2015, Power Asset Holdings ("PAH") shareholders voted against Cheung Kong Infrastructure's ("CKI") offer which killed the transaction. According to SFC's Rule No. 31.1, CKI has to wait 12 months from the lapse of the offer before they can relaunch another bid. The first offer tabled on 8 September 2015 was at an exchange ratio of 1.04 with HKD 5.00 in special dividends. CKI subsequently bumped the offer ratio to 1.066 and increased special dividend component to HKD 7.50. That was not enough. Most people wanted at least 1.10-1.20. The results of the vote showed... 49.29% of votes were against the scheme. Has CKI learnt its lesson, or more importantly, will they come back for PAH?

PAH/CKI - Almost a Year Since the 'Bloodshed'

APAC IPOs & Placements

Zhen Zhou, Toh

CK Infrastructure Holdings / Event-Driven

In June, <a href="https://www.smartkarma.com/entities/163" target="_blank" data-smartkarma-citation="entities:163:1">Cheung Kong Infrastructure (1038 HK)</a>  and China's State Grid made a bid for Ausgrid. But just last week, preliminary decision was made by Australia's Foreign Investment Review Board to reject it. The final decision should be out by this week. This is a good catalyst for CKI's discount to NAV to continue to deepen.In this insight, we analyze the holdco trade primarily on these five factors:<div class="sk-insight-content__block"><ol><li>What's on Offer</li><li>Reasons for Divergence</li><li>Statistics and Set-Up</li><li>Catalysts</li><li>Potential Risks</li></ol></div>

In June, Cheung Kong Infrastructure (1038 HK)  and China's State Grid made a bid for Ausgrid. But just last week, preliminary decision was made by Australia's Foreign Investment Review Board to reject it. The final decision should be out by this week. This is a good catalyst for CKI's discount to NAV to continue to deepen.In this insight, we analyze the holdco trade primarily on these five factors:What's on OfferReasons for DivergenceStatistics and Set-UpCatalystsPotential Risks

Cheung Kong Infra - Discount to NAV Likely to Deepen Further

<ul><li class="p1">CK Hutchison Holdings', or CKHH's, interim results revealed a stronger-than-expected performance from 3 Group that helped to offset weaker retail contribution.</li><li class="p1">The company’s management provided additional insight into its sensitivity to the British pound sterling, supporting our view that CKHH’s earnings would decline by less than 3% if the pound sterling were to fall by 10%.</li></ul>Analysts: Dan Baker &amp; Lorraine Tan

CK Hutchison Holdings', or CKHH's, interim results revealed a stronger-than-expected performance from 3 Group that helped to offset weaker retail contribution.The company’s management provided additional insight into its sensitivity to the British pound sterling, supporting our view that CKHH’s earnings would decline by less than 3% if the pound sterling were to fall by 10%.Analysts: Dan Baker &amp; Lorraine Tan

Building on Its Global Ports,infrastructure, Retail, and Telco Operations.

Hong Kong

CK Infrastructure Holdings Limited (CKI) operates as a real assets investment company. The Company invests in energy, transportation, water, and electricity generation sectors. CKI serves customers worldwide.

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CK Infrastructure Holdings (1038 HK)

CKI Holdings: Much Ado About Sterling, No Change in Our View

Cheung Kong Infrastructure Holdings, or CKI, has seen its share price decline over the past few months following disappointment over the blocked...

Morningstar, Inc.

Buoyant Returns Beyond the Benchmark in 2016 YTD

The first 10 months of 2016 brought its fair share of macroeconomic challenges to the region. During the 10 months, the Straits Times Index (STI)...

Singapore Exchange Ltd (SGX)

PAH/CKI - Almost a Year Since the 'Bloodshed'

In November 2015, Power Asset Holdings ("PAH") shareholders voted against Cheung Kong Infrastructure's ("CKI") offer which killed the...

Crispin Francis

Cheung Kong Infra - Discount to NAV Likely to Deepen Further

In June, Cheung Kong Infrastructure (1038 HK) and China's State Grid made a bid for Ausgrid. But just last week, preliminary decision was made by...

Zhen Zhou, Toh

Building on Its Global Ports,infrastructure, Retail, and Telco Operations.

CK Hutchison Holdings', or CKHH's, interim results revealed a stronger-than-expected performance from 3 Group that helped to offset weaker retail...

Morningstar, Inc.

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